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Computacenter plc Iterim Results

Computacenter plc Interim Results for size months ended 30 June 2015

Computacenter plc Iterim Results

28/08/2015

Computacenter plc (“Computacenter” or the “Group”), the independent provider of IT infrastructure and services that enables users, today announces unaudited results for the six month period ended 30 June 2015

Financial Highlights:

(Note: Figures provided in the tables directly below are provided on an as reported basis)

Financial Key Performance Indicators

H1 2015

H1 2014

Change (%)

Adjusted revenue1 (£ million)

1,438.0

1,435.4

0.2

Adjusted profit before tax1 (£ million)

29.1

25.6

13.7

Adjusted diluted earnings per share1 (pence)

17.0

13.2

28.8

Dividend (pence per share)2

6.4

5.9

8.5

Statutory Performance

   H1 2015  H1 2014
 Change (%)

Statutory profit3 (£ million)

70.7

18.0

292.8

Statutory basic earnings per share (pence)

49.6

7.4

570.3

Statutory diluted earnings per share (pence)

48.8

7.4

559.5

Cash Position

   H1 2015  H1 2014  Change (%)

Underlying Net Funds4 (£ million)

44.9

9.9

353.6

Net Funds (£ million)

44.9

54.0

(16.9)

Revenue Performance by Sector

   H1 2015  H1 2014  Change (%)

Adjusted Services revenue1 (£ million)

489.2

487.2

0.4

Adjusted Supply Chain revenue1 (£ million)

948.8

948.2

0.1

Reconciliation between Adjusted and Statutory Performance in H1 2015

Adjusted profit before tax1 (£ million)

29.1

Exceptional and other adjusting items:

Increase in estimated costs of redundancy
and other restructuring in French business (£ million)

(0.4) (please refer to note 7 to the accounts)
Release of provision taken for onerous German contracts (£ million)

0.4 (please refer to note 7 to the accounts)

Gain recorded on disposal of R.D. Trading Limited (“RDC”) (£ million)

42.2 (please refer to note 7 to the accounts)

Pre-disposal earnings of RDC in the period
(£ million)

0.3 (please refer to note 5 to the accounts)
Amortisation of acquired intangibles (£ million) (0.9) (please refer to note 5 to the accounts)

Statutory profit3 (£ million)

70.7

Operational Highlights:

  • UK business generated continued momentum in its Services business, and consolidated upon the significant Supply Chain growth achieved in H1 2014;
  • German Supply Chain business delivered strong revenue growth. Modest growth seen in Services business with margins lower than expected, primarily due to Professional Services cost increases;
  • During the period, the Group’s onerous contracts have continued to perform better than expectations; and
  • Operating loss reduced within French business, due to reductions in selling, general and administrative expenses(“SG&A”) following the implementation of the 2014 Social Plan and additional cost saving measures. Good progress made in the collection of overdue receivables, but the top-line performance in both Services and Supply Chain remains disappointing.

Mike Norris, Chief Executive of Computacenter plc, commented:

‘Despite the significant headwinds created by a weak Euro, the operating performance of the Group remains in line with the Board’s original expectations for 2015. However, the Group has additionally benefited from a number of one-off gains, which will not be repeated in either the second half of the year or during 2016. As a result of the impact of these additional gains, we now anticipate that the Group’s 2015 adjusted profit performance will be slightly ahead of the Board’s original expectations for that period.’

1Adjusted revenue, adjusted Services revenue, adjusted Professional Services revenue and adjusted Supply Chain revenue excludes the revenue from a disposed subsidiary, RDC, for both the current period and the comparative reporting period. RDC was sold on 2 February 2015. Adjusted operating profit or loss, adjusted profit or loss before tax, adjusted profit or loss for the period, adjusted earnings per share and adjusted diluted earnings per share are, as appropriate, each stated before: exceptional and other adjusting items including gain or loss on business disposals, amortisation of acquired intangibles, utilisation of deferred tax assets (where initial recognition was as an exceptional item or a fair value adjustment on acquisitions), and the related tax effect of these exceptional and other adjusting items, as management do not consider these items when reviewing the underlying performance of the segment or the Group as a whole. Each of these measures also excludes the results of RDC for both the current and comparative periods. Additionally, adjusted operating profit or loss takes account of the interest paid on customer-specific financing (“CSF”) which management considers to be a cost of sale.

2 The comparative Dividend (pence per share) figure provided for 2014 has not been adjusted for the share capital consolidation that took place on 20 February 2015. The figures, as adjusted for the share capital consolidation, are provided within the section entitled ‘Dividend’ in this Interim Report.

3 Statutory profit or loss refers to the unadjusted profit or loss before tax.

4 The H1 2014 ‘Underlying Net Funds’ position is presented having been adjusted for the receipt of £59.8 million in consideration for the disposal of RDC (net of costs relating to the transaction), cash and cash equivalents of £3.9 million in the books of RDC at the time of its disposal, cash and cash equivalents of £1.4 million recorded in the books of RDC as at 30 June 2014 and a net cash impact of approximately £98.9 million relating to the Return of Value transaction completed in Q1 2015.

Note: A reconciliation between key adjusted and statutory segmental measures is provided in note 5, segment information.

Enquiries:


Computacenter


Mike Norris, Chief Executive

01707 631 601

Tony Conophy, Finance Director

01707 631 515

www.computacenter.com


Tulchan Communications

020 7353 4200

James Macey White


Christian Cowley


www.tulchangroup.com


"UK business generated continued momentum in its Services business, and consolidated upon the significant Supply Chain growth achieved in H1 2014"



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